Carbine Resources (ASX:CRB) has announced they have re-negotiated terms for the remaining 25% interest in the Mount Morgan gold copper tailings re-treatment project in Queensland. As a direct result, Carbine has an exclusive option to acquire Raging Bull Mining (RBM). On exercise of the option, subject to any necessary approvals, the shareholders of RBM will receive:

25 million Carbine shares;

A$2.3 million in cash or shares at the election of Carbine (number of shares based on the 15 day VWAP at the time of option election); and

Resource Upgrade – Valuation Update

Carbine Resources (ASX:CRB) has announced a significant resource upgrade at their Mt Morgan gold copper tailings re-treatment project in Queensland.
This has seen the total resource grow by around 20% or 1.8Mt to 397,000oz of contained gold.
The resource upgrade will form the basis for the Definitive Feasibility Study (DFS) which is due to be released during September 2016.
We have increased our valuation for Carbine to $0.50 / share (previous $0.40 / share).

Valuation update and analysis

What Makes A Successful Tailings Re-Treatment Projects?

Historical operations typically mined higher grade ores as well as lower metallurgical recoveries compared to today’s operations. This has presented a unique opportunities in select circumstances for these historical tailings to be reprocessed and the remaining minerals to be economically extracted
We review other tailings re-treatment projects globally to determine what makes them work.